About 100 million dairy farmers in India will directly reap triple benefits of cuts in the Goods and Services Tax (GST). 

According to the Ministry of Cooperation on September 6, 2025, inclusive  dairy product, input and processing equipment levies will universally decrease.

The GST for agricultural equipment will lower to 5% while that for energy gear will slash from 12% to 5%.

This next-gen GST restructuring will help farmers manage dairy prices better because costs will be manageable. One of the biggest culprits of seasonal volatility in dairy costs is fertilizer for fodder, whose duty is also down. 

Some related benefits that indirectly impact dairy include cuts on hitherto costly drip irrigation, which will save farmers on pastures.

Universal Praise

The cuts have garnered approval by co-operatives and industry leaders, right from dairy giant Amul to the common farmer. 

For cooperatives, tax decreases in paneer (Indian cheese) and whole milk will boost operational costs and improve producer profits. 

For mixed farming ventures, even more important are levy breaks on tractors for which India utilizes much for land expansion. 

Tractors have hitherto been inaccessible to smallholder farmers practising mixed agriculture, including animal husbandry, to transport fodder.

According to Union Minister for Cooperatives, the lowering  of GST to 5% also applies to harvesters and other machinery. 

Overall, the new tax regime is critical for dairy India as it improves milk affordability, boosts consumption and raises economic efficiency. As such, the statistics below further examine India’s fabled role in the global dairy sector.

India Dairy Statistics 

India boasts the biggest cattle herd worldwide at 190. 9 million head and Asian buffalo at 108.7 million (per census no. 19). This huge herd makes the subcontinent the cradle of milk production. In the 2000s, the sector grew relentlessly by 4.2% per annum, according to the Association of Academic Researchers and Faculties (AARF).  

The south Asia nation leads global dairy production at 216.5 million tonnes or 24% of the worldwide output (2024-25). Much of this total comes from 58 million dairy cattle (2024-25 tally) or 1/4 of the national cattle herd. 

How does India rate in milk production by animal?

In  2023, cow milk in India totaled 127.1 million tonnes or around 50% of 239.3 million tonnes of all milk. Second in rank is goat milk at 7.8 million tonnes. The United States is runner-up in cow milk at 102.7 million tonnes (2023) while Pakistan follows in goat milk at 1 million tonnes (2023).

Which are India’s top milk products? 

According to the U.S. Department of Agriculture (USDA)’s 2024 forecast, India had a capacity for 212.7 million tonnes of fluid milk. The rest was 6.9 million tonnes of butter and 800,000 tonnes of skimmed milk powder. 

Is India a major dairy consumer? 

India also leads milk and dairy consumption totals worldwide any given year. In 2024, for instance, the country had a dairy consumption volume totaling over 66.1 billion tonnes, per the Helgi Library. Only China and the United States came near in the consumption department.